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2020 Q3 Sacramento Industrial Market Report

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Sacramento’s industrial market continues to shine through a disruptive year for commercial real estate. The industrial market vacancy rate declined 30 basis points quarter-over-quarter as tenant demand continues to increase. The market recorded the highest quarterly net absorption total in more than two years. Amazon occupied its new McClellan delivery station this quarter and is on track to double its local industrial footprint from 1.5 million square feet today to 3.1 million square feet by 2022. The Seattle-based e-commerce giant reported $88.9 billion in second quarter sales and announced that it will be increasing its U.S. distribution operations by 50 percent this year. With sustainable tenant demand and rent growth ticking up again, developers are breaking ground on new projects across the region. In addition to Amazon taking down a new one million square foot build to suit in Metro Air Park and a new development in Southport this quarter, there are multiple speculative buildings that could start construction over the next six months. Buzz Oates broke ground on two new speculative projects in the third quarter (McClellan & Power Inn) while Dermody Properties started construction on its first local project in Southport. Sacramento’s impressive population growth since the start of the pandemic will spur additional demand from industrial occupiers in the logistics, e-commerce, construction, and food and beverage sectors for the foreseeable future.

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2020 Q3 Sacramento Industrial Market Report

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Related Experts

Mark Demetre

Executive Vice President

Sacramento

Throughout my tenure in commercial real estate, I have specialized in advising property owners in the marketing of their industrial assets for lease and sale. This has included several major industrial developments, to potential prospects throughout the nation. I called Colliers home from 1999 to 2010 and am excited to be back. Over the last 20 years, I have averaged more than 125 transactions per year and sold or leased over $1 billion in industrial transactions.

Having been entrenched in the Sacramento commercial real estate market since 1985, I have developed rapport with the community’s brokers, developers, landlords, and tenants. The Colliers and SIOR network allow me to connect with other experts throughout California & the United States and leverage their expertise. This collaboration is key to providing exceptional service to my clients. By fully understanding your goals, I can bring the right team together to provide customized solutions for your evolving needs.

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Matt Lofrano

Executive Vice President

Sacramento

Industrial property owners throughout the Western region rely on Matt’s accountable, communicative, and forward-thinking approach to develop successful marketing and leasing strategies. From initial marketing campaigns through the successful sale or lease negotiations of their assets, Matt directly handles every aspect of the transaction cycle for the projects he is involved with. This experience has allowed him to also be an asset to the region’s institutional landlords as a consultant for new development. Matt focuses on the delivery of service excellence by leveraging his +20 years of market knowledge, offering consistent communication, and anticipating needs. His deep understanding of the challenges his clients face has proven to be instrumental in many completed lease & sale transactions and development projects.ough market insight, consistent communication, and a deep understanding of the challenges his clients face has proven to be instrumental in many completed lease & sale transactions.

Prior to re-joining Colliers as Executive Vice President, Matt served for eight years as Executive Vice President at JLL, ten years as a Senior Vice President in the industrial department at Colliers International, and three years at CB Richard Ellis.

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Michael Hoo

Associate Vice President

Sacramento

Industrial tenants and investors rely on me for my thoughtful and honest advice about the Sacramento real estate market. With my partners, who primarily focus on landlord representation, I provide the complementary services of tenant advisement and investment sales. I help my clients make highly informed decisions by providing strategic connections between the many data points surrounding real estate decisions and translating them into an actionable strategy.

After finishing my collegiate baseball career at Cal Poly, San Luis Obispo, I pursued my MBA. While working to complete my graduate degree, I found a passion for underwriting deals and it was then I knew real estate was the career for me.  Throughout my athletic and academic careers, I learned valuable lessons about teamwork, hard work, and perseverance which have guided my professional growth. 

I consider myself a lifelong student and enjoy any opportunity to learn something new.  By obtaining a deeper understanding of my clients' goals, I look beyond the short-term and position my clients for long-term financial and business success.

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Nathan Miller

Senior Associate

Sacramento

My clients rely on me to provide information and advice that keeps their profitability in the forefront, while holding true  to the highest degree of integrity. With my partners here at Colliers, I am able to leverage a broad range of both experience and industry-wide knowledge to better my degree of service. 

Having been born and raised here in Sacramento, I have a passion for local business growth and overall economic success. My fascination for real estate started with a locally based,  and prolific development company. I learned underneath both the Asset Management and Development arms of the firm as I was exposed to various types of large scale industrial and office projects. After the completion of my degree, my entrepreneurial drive funneled me into brokerage. I spent the next year learning the ins and outs of the brokerage business, and the Sacramento market, as I studied in a research roll with Colliers International. When the opportunity presented itself, I made the decision to specialize solely in the Industrial  product type. 

To me, brokerage is a long-term opportunity and challenge. It  requires building trust, and providing value to clients so that ultimately, they can see success in their business. Sacramento is proving to be an exciting place to be for the long-term;  and I look forward to the opportunity to both benefit and grow with my client's as new challenges arise.  Please do not hesitate to reach out to me for any of your business  or real estate needs. 

 

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Tommy Ponder

Executive Vice President

Sacramento

As executive vice president in Colliers’ Sacramento office and market leader, my team specializes in sales and leasing of industrial product primarily in the greater Sacramento region.  Colliers’ unique and collaborative culture gives me the ability to service accounts across the Western United States. 

I began my career in industrial real estate in 2003 after owning and operating a business in the Czech Republic. Running a business in a foreign country was both challenging and exhilarating.  The experience helps me connect me with business owners and decision makers regionally and at institutional and corporate levels.  It is the partnerships and personal connections with each owner-user, tenant, and landlord, that drives me to form lasting relationships. I pride myself on always putting the needs of my clients first, treating each deal as my top priority with integrity, energy, and attention to detail.   

Bringing value to my client’s real estate transactions is key, however, it’s very satisfying knowing their experience with me and my team will make a lasting impression. I pride myself on always putting the needs of my clients first and treating each deal as my top priority.

In my free time, I enjoy the outdoors with my wife, two children, and dogs. My all-time favorite reset buttons include racing motorcycles in the cross-country AMA D36 series and coaching little league.

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Spencer Bones

Vice President

Sacramento

As Vice President within our industrial department, I advise property owners and industrial tenants by providing market intel, financial analysis, and creative strategy. I specialize in the leasing, disposition, and acquisition of industrial properties throughout the Greater Sacramento Area including Power Inn, Highway 50 Corridor, and Placer, Sutter, and Yuba counties. I offer an intricate knowledge of our submarkets and understanding of the specific policies and ordinances that affect progressive industrial property use. Whether you are an investor hoping to reposition an asset or a manufacturing company looking to expand to the Sacramento area, my clients partner with me because of my energy, determination to get the job done, and track record of success.

I started my career in commercial real estate after developing and operating a successful eCommerce business. Prior to that I spent 4 years with The Conco Companies managing large scale projects including the Sutter Health hospital in Sacramento and over $20 million in improvements to the Stanford Linear Accelerator.  My project management and eCommerce experience allow me to provide a unique perspective to my client’s challenges and develop a strategy to overcome them.

Outside of the office, you can find me spending time with my family. I am a licensed pilot and enjoy being outdoors.

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George Vrame

Senior Associate

Sacramento

As an Associate with Colliers, I represent investors, owners-users, and tenants in the acquisition, disposition, and leasing of industrial real estate throughout the Sacramento Region. I specialize in logistics/distribution, manufacturing, warehouse, and flex assets.  My detail-oriented and thorough approach ensures my clients receive a high level of service and expert advice on their real estate needs. My knowledge of the Sacramento Real Estate market stems from my prior work as a project manager for a local development company specializing in land development and wetland mitigation. This experience gave me the opportunity to work on many specialized and challenging transactions which shaped my ability to find creative solutions and meet my client’s goals.

I was born and raised in the Sacramento region and graduated from Jesuit High School. I continued my education at the University of California, Berkeley where I was a member of the varsity rugby team and graduated with a degree in Environmental Economics and Policy. My experience at Cal both in the classroom and on the rugby field taught me dedication, time management, and collaboration. These are all skills I have translated into my professional career to aid in the success of my clients.  

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Andrea Nelson

Associate

Sacramento

As an Industrial Advisor with Colliers, I have a deep knowledge of the local market and current trends which allow me to better serve my clients.  

Before coming to the Commercial Real Estate industry, I spent 15 years in sales and education for an international supplement manufacturer.  I focused on educating retailers and business owners, helping them achieve higher profits and an increased knowledge base to help them strengthen the relationships they had with their customers.

I pride myself on working hard and the success I bring to my clients.  I listen to the needs of my clients and put their best interests first.  I think like an owner. Whether you own a business or a property, I will prioritize finding the best opportunity to create a more profitable outcome for you. I’m committed to achieving the best results for each and every deal

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Tom Tyer

Executive Vice President

Sacramento

Since starting my commercial real estate career with Colliers International in 1987 I have helped clients with all aspects of their industrial real estate. I have also assisted many quality companies that have been refered to me by Colliers and SIOR associates, In the last decade, I have been involved in almost 500 industrial transactions totaling over 7 million square feet.

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